ABSTRACT
Notwithstanding the increasingly digital era we live in, energy remains a vital lifeblood of the U.S. and the global economy. As the world’s two dominant energy consumers, China and the United States are indirectly but substantially linked through their mutual dependence on oil, natural gas and other forms of energy. This interdependence is manifested in terms of energy demand, energy supply, energy prices, the environmental impacts of energy use, and through issues of energy security. Historically, energy prices have been and continue to be generally quite erratic, due to both demand and supply shocks. The rise of China has contributed substantially to rising global demand for energy supplies, putting upward pressure on energy prices. The widespread introduction of “fracking” in the United States has contributed to a counterbalancing shock on the supply side over the past decade, and has in remarkably short order flipped the U.S. position from that of a gigantic net importer to that of the world’s largest exporters of energy supplies, albeit with substantial environmental impacts. There are also tightly correlated interactions between energy use and repercussions for climate change. As both the U.S. and China strive to ensure energy security for themselves, the geopolitical dimensions of energy supplies become increasingly important. Because energy policy is so important in its own right, and because it has such vital linkages to climate change and other sustainability considerations, the United States should seek to engage China constructively on furthering mutually beneficial arrangements for ensuring sustainable and secure energy futures for both countries.
